Getting down to brass tacks

The complainant worked for Idaho Spur from 1991 to December 2000. During this time she made regular contributions to the Idaho Spur Provident Fund. Following termination of her service, she expected to receive her withdrawal benefit from the fund.

The details

However, despite numerous enquiries with her former employer and fund administrator, her benefit remained unpaid for almost 5 years. The administrator could not release her benefit because it had not received a withdrawal notification form from the employer.

The employer submitted that due to changes in management and staff through the years, and the lack of co-operation from the administrator, no withdrawal notification was completed.

The finding

The adjudicator found that the long delay in effecting payment to the complainant was inexcusable. He reprimanded the conduct of the employer for its failure to submit a withdrawal notification form.

This document is essential as it indicates to the fund what type of benefit must be paid. Had the complainant been represented, the adjudicator would have made a cost award against the employer, which award is rarely granted by the adjudicator.

The adjudicator was also unhappy with the role of the board of management (trustees) of the fund for failing to act with due care, diligence and good faith in respect of the member.

He held that after the employer failed to submit the necessary forms, the board should have instituted legal proceedings against the employer and compelled it to complete the form.

Instead, the board has done nothing for almost 5 years to the detriment of the member. He further noted that had the complainant been legally represented in this matter, he would have had no hesitation in making a costs award against the trustees in their personal capacities.

The adjudicator ordered the employer to complete the notification form, within 7 days and ordered the fund to pay the benefit within 14 days of the ruling. Furthermore, the administrator was directed to serve the ruling on the board of trustees.